New York's deposit rules are in the General Obligations Law. Section 7-108 covers most rental units, and Section 7-107 sets parallel rules for rent-stabilized units. Interest and how the money is held are covered in Section 7-103, and what happens when a building is sold is in Section 7-105. This guide explains the parts renters ask about most, with a link to the official source for each point.
Last reviewed: October 2026. This version adds the November 2025 changes for rent-stabilized apartments.
This is general information, not legal advice. Your lease and local rules may add requirements. Check the linked official source, or talk to a qualified local advisor about your situation.
At a glance
| Topic | What the law says | Source |
|---|---|---|
| Return deadline | Itemized statement and remaining deposit within 14 days after you move out | GOL § 7-108(1-a)(e) |
| Missed deadline | Landlord forfeits any right to keep any part of the deposit | GOL § 7-108(1-a)(e) |
| Deductions | Unpaid rent, damage beyond normal wear and tear, certain utility charges, moving and storage of your belongings | GOL § 7-108(1-a)(b) |
| Deposit cap | One month's rent, with narrow exceptions | GOL § 7-108(1-a)(a) |
| Inspections | Offered before move-in; available on request before move-out | GOL § 7-108(1-a)(c)–(d) |
| Interest | Required in buildings with six or more units | GOL § 7-103(2-a) |
| Rent-stabilized units | The same 14-day, itemization and inspection rules, under Section 7-107 (changes in effect since November 15, 2025, according to HCR) | GOL § 7-107, HCR fact sheet |
| Building sold | Deposit is turned over to the new owner within five days, and you are told by registered or certified mail | GOL § 7-105 |
Which units this covers. Section 7-108 applies to all dwelling units except rent-stabilized units, which Section 7-107 covers with matching rules (§ 7-108(1), § 7-107(1)). The cap, deduction, inspection, and 14-day rules in paragraph 1-a of Section 7-108 don't apply to rent-controlled units or to certain senior, assisted living, and retirement communities (§ 7-108(1-a)).
For more context on security deposit rules across states, see the security deposit rules by state guide.
See how this compares with other states in how long a landlord has to return a security deposit.
Key deadlines, step by step
New York's rules run on a timeline. It starts before you move in and ends 14 days after you move out.
| When | What happens | Source |
|---|---|---|
| After you sign the lease, before you move in | The landlord must offer a joint inspection. If you ask for it, you both sign a written agreement on the unit's condition, noting existing defects or damage | § 7-108(1-a)(c) |
| Within a reasonable time after either side gives notice to end the tenancy | The landlord tells you in writing that you can ask for an inspection before you move out, and be present. This does not apply if you end the tenancy with less than two weeks' notice | § 7-108(1-a)(d) |
| Between two weeks and one week before the tenancy ends | If you asked, the inspection takes place. The landlord gives at least 48 hours' written notice of the date and time | § 7-108(1-a)(d) |
| After that inspection | The landlord gives you an itemized statement of the repairs or cleaning they propose to deduct for. You can fix those items before the tenancy ends | § 7-108(1-a)(d) |
| Within 14 days after you vacate | The landlord sends an itemized statement of anything kept, and returns the rest | § 7-108(1-a)(e) |
| If day 14 passes without the statement and deposit | The landlord forfeits any right to keep any portion of the deposit | § 7-108(1-a)(e) |
Write down the date you hand back the keys. The 14 days run from the day you vacate, so that date matters more than any other.
Return deadline
Within 14 days after you vacate, the landlord must give you an itemized statement showing the basis for any amount kept, and return the rest of the deposit (§ 7-108(1-a)(e)).
If the landlord misses the deadline. If the statement and deposit aren't provided within 14 days, the landlord forfeits any right to keep any portion of the deposit (§ 7-108(1-a)(e)).
If there's a dispute. The landlord has the burden of proving that the amount kept was reasonable (§ 7-108(1-a)(f)). The statute makes a person who violates these rules liable for actual damages, and a person found to have willfully violated them liable for punitive damages of up to twice the deposit (§ 7-108(1-a)(g)). A court decides what applies in a given case.
No waivers. A lease clause that waives or changes your rights under Section 7-108 is void (§ 7-108(3)).
Allowed deductions
The whole deposit is refundable when you move out, except for amounts lawfully kept for the reasonable and itemized costs of (§ 7-108(1-a)(b)):
- Unpaid rent.
- Damage you caused beyond normal wear and tear.
- Unpaid utility charges payable directly to the landlord under the lease.
- Moving and storing your belongings.
The landlord may not keep any part of the deposit for ordinary wear and tear, or for damage caused by a previous tenant (§ 7-108(1-a)(b)).
What counts as normal wear and tear in New York
The statute uses the phrase "normal wear and tear" but does not define it (§ 7-108(1-a)(b)). In practice the question is whether something is the ordinary result of living in the unit over time, or damage caused by the tenant beyond that.
- Usually closer to wear: light scuffs where furniture stood, carpet worn along a walkway, paint faded by sun, small nail holes from hanging pictures.
- Usually closer to damage: a hole in a wall, burns or deep stains in flooring, broken fixtures, pet damage.
Each case depends on its facts, including the age and condition of the item when you moved in. That is why the signed move-in condition agreement matters: the landlord can't keep money for anything noted in it (§ 7-108(1-a)(c)). If a deduction is for damage, the New York Attorney General suggests you can ask for the repair receipts (NY Attorney General).
For more on telling wear from damage, see our guide to normal wear and tear.
Inspections: before move-in and before move-out
Before move-in. After you sign the lease but before you move in, the landlord must offer you the chance to inspect the unit together. If you ask for the inspection, you both sign a written agreement describing the unit's condition and noting existing defects or damage. The landlord can't later keep deposit money for anything noted in that agreement (§ 7-108(1-a)(c)).
Before move-out. Within a reasonable time after either side gives notice to end the tenancy, the landlord must tell you in writing that you can request an inspection and be present for it. This doesn't apply if you end the tenancy with less than two weeks' notice. If you ask, the inspection happens between two weeks and one week before the tenancy ends, with at least 48 hours' written notice. Afterward, the landlord gives you an itemized statement of proposed deductions, and you can fix those items before you leave (§ 7-108(1-a)(d)).
A simple example: the pre-move-out statement lists a scuffed wall. You fix it before your last day and photograph the result. That gives you a dated record to compare with the final statement.
Interest
Buildings with six or more units. If the rental property has six or more family dwelling units, the landlord must deposit the money in an interest-bearing account at a banking organization in New York, earning the prevailing rate in the area (§ 7-103(2-a)).
Smaller buildings. In a building with fewer than six units, interest is owed only if the landlord chose to put the deposit in an interest-bearing account (NY Attorney General).
How interest is split. When a deposit is held in an interest-bearing account, the landlord may keep 1% per year as an administration fee. The rest of the interest belongs to you, and is either held in trust until it's repaid or applied to rent, or paid to you every year (§ 7-103(2)).
A worked example. The Attorney General gives this one: a $400 deposit in an account paying 2.5% earns $10 in a year. The tenant is entitled to $6, and the landlord may keep $4, which is 1% of the deposit (NY Attorney General).
Bank notice. A landlord who deposits the money in a bank must tell you in writing the bank's name and address and the amount deposited (§ 7-103(2)).
Held in trust. In all cases, the deposit remains your money, must be held in trust, and may not be mixed with the landlord's own funds (§ 7-103(1)).
Deposit cap
A deposit or advance may not be more than one month's rent. The exceptions are certain registered seasonal-use units and certain owner-occupied cooperative apartments (§ 7-108(1-a)(a)).
The Attorney General explains that the one-month limit means a landlord cannot ask for last month's rent and a security deposit. If the rent goes up on renewal or during the lease, the landlord may collect enough extra to bring the deposit up to the new monthly rent (NY Attorney General).
Some cities have their own housing rules as well, so check local requirements where you live.
Rent-stabilized apartments
Rent-stabilized units are covered by Section 7-107, not Section 7-108. The current text of Section 7-107 sets the one-month cap, the same list of allowed deductions, a move-in inspection, a pre-move-out inspection, and the 14-day itemized statement, with the same forfeiture if the landlord misses it.
New York's housing agency, Homes and Community Renewal (HCR), says changes to Section 7-107 took effect on November 15, 2025 and extend these protections to rent-stabilized tenants (HCR fact sheet). Some older guides, including earlier versions of state publications, still say the 14-day rule applies only to units that are not rent-regulated. If you rent a stabilized apartment, use the current statute and the HCR fact sheet.
HCR also says the deposit in a rent-stabilized unit must be kept in an interest-bearing account at a New York bank, and that you choose whether interest is applied to rent, held until the end of the tenancy, or paid once a year (HCR fact sheet).
If the building is sold
When a landlord sells the building or assigns the lease, the deposit must be turned over to the new owner at the time of the transfer or within five days after it. The landlord must notify you by registered or certified mail and give the new owner's name and address (§ 7-105; NY Attorney General).
Keep your deposit receipt, a copy of the lease, and any bank notice. Under Section 7-108, a new owner who says there is no record of your deposit must tell you in writing, and documents such as a cancelled check, a receipt, or a lease signed by a previous owner count as evidence of the deposit.
You can also work through our move-in checklist on day one and our move-out checklist on your last day.
What to keep on record at move-in and move-out
New York's written move-in agreement is a strong reason to do your own documentation at the same time. A few habits help.
- At move-in: ask for the move-in inspection, keep a copy of the signed condition agreement, and photograph every room on the same day. The move-in inspection checklist walks through it room by room.
- Keep payment and bank records: your deposit receipt, and the landlord's written notice of where the deposit is held, if you received one.
- During the tenancy: log problems when you notice them, and keep the landlord's replies.
- Before move-out: request the pre-move-out inspection in writing, keep the itemized statement, and photograph anything you fix. The rental damage photo checklist covers useful angles and close-ups.
- After move-out: note the date you vacated, and keep the final statement next to your own photos. The security deposit evidence checklist covers what to gather if something is unclear.
An organized, dated record makes a deduction list easy to review rather than easy to dispute. RentSeal is one way to keep that record: move-in photos organized by room, issues logged with dates, and an evidence pack you can export as a PDF or share as a read-only link if your deposit is ever disputed.
Ask for it in writing
If the deadline has passed or you disagree with a deduction, put it in writing. Our free security deposit demand letter writes a polite, dated letter that names your state's law, lists each charge you dispute and asks for the money or for receipts within a set number of days. Nothing you type leaves your browser.
If the deposit isn't returned: where to turn
- Write to the landlord first. Give the date you moved out, the amount of the deposit, and what you are asking for. Keep a copy.
- The New York Attorney General. The Attorney General's office offers mediation to help tenants recover deposits and interest (NY Attorney General). Its complaint form says it investigates complaints that a landlord failed to place deposits in trust accounts or pay interest, and asks you to try to resolve the matter with the landlord first (complaint form, PDF).
- Small claims court. Where the landlord says you failed to pay rent or damaged the apartment, the Attorney General says you generally have to go to small claims court to resolve the dispute (complaint form, PDF). The Attorney General suggests bringing the lease, cancelled checks and receipts to the hearing (NY Attorney General). Your own dated photos belong with them.
- Rent-stabilized tenants. HCR points to small claims court or the Attorney General's Consumer Frauds and Protection Bureau (HCR fact sheet).
Each route has its own process, and none decides the outcome in advance. A legal aid organization or a local attorney can tell you what fits your situation.
FAQ
How long does a landlord have to return a security deposit in New York?
14 days after you vacate. Within that time the landlord must send an itemized statement of anything kept and return the rest (§ 7-108(1-a)(e)).
What happens if the landlord misses the 14-day deadline?
The statute says the landlord forfeits any right to keep any portion of the deposit if the statement and deposit are not provided within 14 days (§ 7-108(1-a)(e)).
Can a New York landlord charge more than one month's rent as a deposit?
No, apart from narrow exceptions such as certain registered seasonal-use units and certain owner-occupied co-ops. A landlord also cannot ask for last month's rent on top of a security deposit (§ 7-108(1-a)(a); NY Attorney General).
Do I get interest on my security deposit in NYC?
If your building has six or more units, yes: the deposit must be in an interest-bearing New York bank account, and you get the interest minus a 1% yearly administration fee. In a smaller building, interest is owed only if the landlord chose an interest-bearing account (§ 7-103; NY Attorney General).
Do the 14-day rules apply to rent-stabilized apartments?
Yes. Section 7-107 contains the same 14-day itemized statement rule for rent-stabilized units, and HCR says the changes took effect on November 15, 2025 (§ 7-107; HCR fact sheet).
Can my landlord deduct for cleaning or painting?
Only within the statute's list: unpaid rent, damage beyond normal wear and tear, certain utility charges, and moving and storing your belongings, each reasonable and itemized. The landlord can't deduct for ordinary wear and tear. If you asked for the pre-move-out inspection, any proposed repairs or cleaning should appear on the statement you get afterward, so you can fix them first (§ 7-108(1-a)(b), (d)).
Sources
- New York General Obligations Law § 7-108, NYS Senate Open Legislation: https://www.nysenate.gov/legislation/laws/GOB/7-108 (Last checked: October 7, 2026)
- New York General Obligations Law § 7-107 (revision of November 21, 2025), NYS Senate Open Legislation: https://www.nysenate.gov/legislation/laws/GOB/7-107 (Last checked: October 7, 2026)
- New York General Obligations Law § 7-105, NYS Senate Open Legislation: https://www.nysenate.gov/legislation/laws/GOB/7-105 (Last checked: October 7, 2026)
- New York General Obligations Law § 7-103, NYS Senate Open Legislation: https://www.nysenate.gov/legislation/laws/GOB/7-103 (Last checked: October 7, 2026)
- New York State Homes and Community Renewal, "Renting an Apartment: Security Deposits and Other Charges" fact sheet (November 2025): https://hcr.ny.gov/system/files/documents/2025/11/fact-sheet-09-11-2025.pdf (Last checked: October 7, 2026)
- New York State Attorney General, "Tenants": https://ag.ny.gov/resources/individuals/tenants-homeowners/tenants (Last checked: October 7, 2026)
- New York State Attorney General, "Recovering Rent Security Deposits and Interest": https://ag.ny.gov/resources/individuals/tenants-homeowners/tenants/recovering-rent-security-deposits-and-interest (Last checked: October 7, 2026)
- New York State Attorney General, rent security complaint form (PDF): https://ag.ny.gov/sites/default/files/nyc-rent-security-complaint-english.pdf (Last checked: October 7, 2026)
Before you act
This is general information, not legal advice. Deposit rules change, and your lease or local rules may add requirements. For your own situation, read the linked official source or speak with a qualified local advisor.